(Bloomberg) -- Top Biden administration officials are weighing limits on exports of fuel as the White House struggles to contain gasoline prices that have topped $5 per gallon.

Discussions around capping gasoline and diesel exports have picked up in recent days, as President Joe Biden intensified his criticism of soaring oil company profits, said people familiar with the matter who asked for anonymity to describe private conversations.

Limits under consideration would fall short of a complete ban on foreign sales of petroleum products, with gasoline exports averaging 755,000 barrels a day so far this year, according to the US Energy Information Administration. That’s up from 681,000 barrels a day during the same period in 2021.

The discussion comes as White House officials consider an array of options for taming gasoline prices that pose an increasing political risk for Biden and Democrats struggling to maintain control of the House and Senate during the November midterm elections. White House Press Secretary Karine Jean-Pierre said Wednesday the president is open to using emergency wartime powers under the Defense Production Act to “lower costs at the pump.”

It wasn’t immediately clear how advanced the discussions are; at least one person was told any new export controls are not imminent. 

An export ban could conflict with other geopolitical priorities. Biden has repeatedly highlighted the US commitment to help ensure European allies have sufficient energy supplies amid the war in Ukraine. US restrictions on diesel exports to Europe could create new friction with allies overseas as they wean off of Russian supplies. And analysts have said export limits are unlikely to lower the price of gasoline in the long run.

A White House spokesman didn’t immediately respond to a request for comment.

Other actions that have been discussed in recent weeks include waiving gasoline from anti-smog rules that require low-volatility fuel in the summer, two people said. The shift could reduce costs by allowing fuel blenders to mix in lower-cost butane.

Staff from the National Economic Council have considered legal avenues for restricting exports, including possibly under the 2015 law that unleashed overseas sales of crude, one person said. One approach could be to limit exports of future increases in fuel production -- effectively capping sales at existing levels -- another person said. 

There is no apparent explicit presidential authority to ban oil products exports, but the president could tap vast emergency powers, ClearView Energy Partners LLC said in a research note. 

 

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